Directors Present (14): Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Martini, Newhouse Segal, Pahre, Reilly and Shahum; Second Vice President Boro; First Vice President Moylan; President Middlebrook

Directors Absent (5):  Directors Kerns, McGoldrick, Murray, Sandoval and Stroeh

Staff Present: General Manager Celia G. Kupersmith; District Engineer Denis J. Mulligan; Auditor-Controller Joseph M. Wire; Secretary of the District Janet S. Tarantino; Attorney David J. Miller; Deputy General Manager/Bridge Division Kary H. Witt; Deputy General Manager/Bus Division Susan C. Chiaroni; Deputy General Manager/Ferry Division James P. Swindler; Deputy General Manager/Administration and Development Teri W. Mantony; Public Affairs Director Mary C. Currie; Human Resources Director Larry Daniel; Marketing and Communication Director Kellee Hopper; Deputy District Engineer Ewa Z. Bauer; Principal Planner Maurice P. Palumbo; Senior Planner Franklin Wong; Paint Superintendent Dennis Dellarocca; Ironworker Darrell Bailey; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Karen Engbretson; Captain Locati

Directors BROWN/MOYLAN moved approval of the Consent Calendar.  All items were approved by the following vote of the Board of Directors:

AYES (13):      Directors Brown, Cochran, Dufty, Eddie, Hernández, Martini, Newhouse Segal, Pahre, Reilly and Shahum; Second Vice President Boro; First Vice President Moylan; President Middlebrook

NOES (0):       None

1. Approve the Minutes of the Regular Meeting of the Board of Directors of September 9, 2005

Carried

a. Claim of Michael Patane

Carried

b. Claim of James L. Burke

Carried

c. Amended Claim of Francis Wilson 

Carried

3. Ratify Actions by the Auditor-Controller

Resolution No. 2005-081 (Finance-Auditing Committee, September 22, 2005) ratifies actions taken by the Auditor-Controller, as follows:

a. Ratify commitments and/or expenditures totaling $57,615.55;

b. Ratify investments made by the Auditor-Controller during the period August 16, 2005 through September 12, 2005, as follows;

c. Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between September 13, 2005, and October 17, 2005, as well as the investment of all other funds not required to cover expenditures that may become available; and,

d. Accept the Investment Report for August 2005 prepared by Public Financial Management.

Adopted

General Manager Celia Kupersmith acknowledged the accomplishments of the following District employees: 

a. Ms. Kupersmith recognized Senior Planner Franklin Wong, who was selected as a scholarship recipient of the American Public Transportation Foundation Transit Hall of Fame Scholarship Program and awarded a stipend in the amount of $2,500 for the 2005-2006 academic year.  He was also selected as an essay winner for the American Public Transportation Foundation’s Donald C. Hyde Memorial Program, receiving $500 for his winning essay.  She stated that Mr. Wong attended a special reception at the American Public Transportation Association (APTA) Annual Meeting and Expo recently held in Dallas, Texas, where he was recognized, along with the other scholarship recipients.

b. Ms. Kupersmith recognized Marketing and Communications Director Kellee Hopper, who was selected as a participant in APTA’s Leadership APTA class of 2005-06.  She stated that Ms. Hopper attended a special luncheon at the APTA Annual Meeting and Expo, where she was recognized along with the other Leadership APTA class of 2005-06 recipients.

c. Ms. Kupersmith reported that the San Francisco Section of the American Society of Civil Engineers recently recognized the Golden Gate Bridge Seismic Retrofit Project, Phase 2 as the “Special Earthquake Engineering Project of the Year.”  She acknowledged the hard work and dedication of the District’s Engineering Department and construction management consultant staff for this achievement.

d. Ms. Kupersmith recognized Paint Superintendent Dennis “Rocky” Dellarocca, who was selected by Tony Hyland, author of the children’s book, Extreme Jobs – High-rise Workers, as holding one of the world’s most “Extreme Jobs.” Specially featured in the children’s book, Mr. Dellarocca described his job, his work experience, the work environment and why he loves his job on the Golden Gate Bridge.

e. Ms. Kupersmith recognized Ironworker Darrell Bailey, who was recently honored as a “2005 Marin County Community Hero” for his role in a dramatic and difficult suicide rescue on the Golden Gate Bridge in 2003.  Mr. Bailey received honors from the Marin County Board of Supervisors, the American Red Cross, California State Assemblyman Joe Nation and Congresswoman Lynn Woolsey.  Ms. Kupersmith stated that Mr. Bailey is a fine example of the many heroes working at the Golden Gate Bridge.

f.  Ms. Kupersmith stated that Principal Planner Maurice Palumbo’s technical expertise has received nationwide industry recognition for developing solutions to correct roadway designs in order to accommodate the turning radius of 45-foot MCI buses.

President Middlebrook remarked that the District is fortunate to have such dedicated and accomplished employees.

General Manager Celia Kupersmith reported on the results of a recent election held pursuant to the District’s Employer-Employee Resolution regarding the proposed formation of a new collective bargaining unit comprised of Bridge Sergeants.  At its meeting of June 24, 2005, by Resolution No. 2005-053, the Board had determined that the unit of Bridge Sergeants would constitute an appropriate unit for collective bargaining purposes.  Ms. Kupersmith stated that with the election held on September 26, 2005, carried out under the auspices of the State Conciliation Service, the Bridge Sergeants voted to be represented by the International Union of Operating Engineers, Local No. 3.  Accordingly, it is recommended that the Board of Directors approve formal recognition of the International Union of Operating Engineers, Local No. 3, representing the employee unit consisting of Bridge Sergeants.  She further stated that after the Board has approved this formal recognition, staff and the Labor Negotiator will begin negotiating a Memorandum of Understanding for this new employee unit.

Directors BROWN/COCHRAN

Resolution No. 2005-082 approves recognition of a Bridge Sergeant bargaining unit to be represented by the International Union of Operating Engineers, Local No. 3.

Adopted

AYES (13):      Directors Brown, Cochran, Dufty, Eddie, Hernández, Martini, Newhouse Segal, Pahre, Reilly and Shahum; Second Vice President Boro; First Vice President Moylan; President Middlebrook

NOES (0):       None

Ms. Kupersmith reported that the Board of Directors, by Resolution No. 2005-010 at its meeting of February 25, 2005, approved the recognition of a Bridge Patrol Officer bargaining unit to be represented by the International Union of Operating Engineers, Local No. 3 (Local No. 3).  Subsequently, the Board of Directors, by Resolution No. 2005-054 at its meeting of June 24, 2005, authorized execution of a Memorandum of Understanding (MOU) between Local No. 3 and the District for the bargaining unit of Bridge Patrol Officers.  Following this action, the members of the bargaining unit rejected the MOU.  Subsequently, the members of the bargaining unit voted again on the MOU and accepted it, which now prompts the need for renewed action on the part of the Board of Directors.  Accordingly, it is recommended that the Board of Directors authorize ratification of this MOU.  The MOU incorporates the existing terms and conditions of employment for the Bridge Patrol Officers, as well as the terms and conditions of the Union Coalition Agreement.  The MOU includes the 3% wage increase contained in the Union Coalition Agreement, and will be effective until June 30, 2006.  The negotiated increases in wages and shift differentials are effective as of September 26, 2005, the first day of the pay period during which Local No. 3 ratified the MOU.

Directors BORO/REILLY

Resolution No. 2005-083 authorizes ratification of a Memorandum of Understanding with International Union of Operating Engineers, Local No. 3, representing Bridge Patrol Officers, effective September 26, 2005, through June 30, 2006.

Adopted

AYES (14):      Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Martini, Newhouse Segal, Pahre, Reilly and Shahum; Second Vice President Boro; First Vice President Moylan; President Middlebrook

NOES (0):       None

Directors BROWN/SHAHUM

Resolution No. 2005-084 authorizes    award of Contract No. 2006-BT-6, Luggage Bay Bicycle Racks, to Sportworks, Woodinville, WA, as a sole source, for the purchase of 54 MCI luggage bay bicycle racks, in an amount not to exceed $200,000, with the understanding that requisite funds (80% Federal Transit Administration/20% Transportation Fund for Clean Air grant funded) are available in the FY 05/06 Bus Division Capital Budget.

Adopted

AYES (14):      Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Martini, Newhouse Segal, Pahre, Reilly and Shahum; Second Vice President Boro; First Vice President Moylan; President Middlebrook

NOES (0):       None

11. Grant Authority to the General Manager to Approve Requests for Special Event Ferry Service to and from the Larkspur Ferry Terminal and SBC Park and Amend Master Ordinance 2005

Directors BROWN/COCHRAN

Ordinance No. 2005-04 grants authority to the General Manager to approve requests for special event ferry service to and from the Larkspur Ferry Terminal and SBC Park, with the understanding that such requests will be granted only when: (1) it has been established that there is sufficient interest in the event by the public; (2) the revenue generated will, at a minimum, cover all costs to provide the service, including any marketing and advertising costs; (3) the service will not impact regularly scheduled commute or SBC Park service; and, (4) the fare for the event will be equal to that charged for SBC Park baseball events; and, amends Master Ordinance 2005 accordingly.

Adopted

AYES (14):      Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Martini, Newhouse Segal, Pahre, Reilly and Shahum; Second Vice President Boro; First Vice President Moylan; President Middlebrook

NOES (0):       None

Authorize Exemption from Tolls on the Golden Gate Bridge During Commute Hours for Clean-Air Vehicles and Amend Master Ordinance 2005

Directors BORO/PAHRE

Ordinance No. 2005-05 authorizes exemption from tolls on the Golden Gate Bridge during commute hours for vehicles bearing a distinctive “Clean-Air Vehicle” decal issued by the State of California Department of Motor Vehicles; and, amends Master Ordinance 2005 by deleting the expiration date and by adding a definition of the types of “Clean-Air Vehicles” to Section II, “Golden Gate Bridge and Approaches,” Section F, “Exemption from Tolls,” Subsection 11, to read as follows:

"11.       Vehicles, as defined by the California Air Resources Board or United States Environmental Protection Agency and as described below, bearing a distinctive “Clean-Air Vehicle” decal issued by the State of California Department of Motor Vehicles, denoting participation in the Clean-Air Vehicle Program between the hours of 5:00 a.m. to 9:00 a.m. and 4:00 p.m. to 6:00 p.m., Mondays through Fridays, excluding the following holidays: New Year’s Day; Washington’s Birthday (third Monday in February); Memorial Day (last Monday in May); Independence Day (July 4); Labor Day; Thanksgiving Day; and Christmas Day:

• ZEV – Zero Emission Vehicle (electric vehicle);
• SULEV – Super Ultra Low Emission Vehicle (compressed natural gas or liquid petroleum gas (propane) vehicle with very low emissions);
• ULEV – Ultra Low Emission Vehicle (compressed natural gas or liquid petroleum gas (propane) vehicles with low emissions; or,
• ILEV – Inherently Low Emission Vehicle (compressed natural gas or liquid petroleum gas (propane) vehicles not including gasoline-powered cars).

with the understanding that this toll-free passage does not apply to hybrid vehicles which use gasoline.”

Adopted

AYES (14):      Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Martini, Newhouse Segal, Pahre, Reilly and Shahum; Second Vice President Boro; First Vice President Moylan; President Middlebrook

NOES (0):       None

Directors PAHRE/EDDIE

Resolution No. 2005-085 authorizes budget adjustments in the FY 05/06 Bridge, Bus, Ferry and District Divisions’ Operating Budgets, in the total amount of $2,467,400, to correct the CalPERS Pension Rate, as follows:

a. Increase in the Bridge Division in the amount of $943,600;

b. Increase in the Bus Division in the amount of $622,100;

c. Increase in the Ferry Division in the amount of $208,200; and,

d. Increase in the District Division in the amount of $693,500.

Adopted

AYES (14):      Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Martini, Newhouse Segal, Pahre, Reilly and Shahum; Second Vice President Boro; First Vice President Moylan; President Middlebrook

NOES (0):       None

Directors PAHRE/MOYLAN

Ordinance No. 2005-06 authorizes implementation of a regional bus and ferry fare restructure program, effective December 11, 2005, as outlined in the attached Ordinance; and, amends Master Ordinance 2005 accordingly.

Adopted

AYES (14):      Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Martini, Newhouse Segal, Pahre, Reilly and Shahum; Second Vice President Boro; First Vice President Moylan; President Middlebrook

NOES (0):       None

In a memorandum to the Board of Directors, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a report regarding the District’s financial situation, with a review of deficit reduction actions currently underway and options for eliminating the remaining portion of the deficit.  The report focused on general education to lay the groundwork for the strategic planning process, with the goal to develop an updated Strategic Plan for Achieving Long-Term Financial Stability (Strategic Plan).  The report outlined the current financial deficit, including a recently updated five-year financial projection and five-year deficit reduction targets.  The report also provided a potential plan to eliminate the five-year deficit, and discussed the next steps for the strategic planning process.

The report stated that the current five-year deficit is projected to be $89 million, which is $19 million less than the $108 million estimate reported last year.  Over the past three years, the Board has implemented transit service and administrative staff reductions. In addition, revenue enhancement programs, such as the first toll increase in 11 years and annual transit fare increases, were also undertaken.  In 2003, the Board directed staff to develop detailed plans for revenue-based strategies to further reduce the deficit, which were discussed in a series of meetings and workshops between December 2003 and February 2005.  A review of these discussions is included in Appendix B, attached to the report.

The report outlined several potential five-year deficit reduction targets for eliminating the remaining deficit, of which some of the targets are underway.  These targets were depicted graphically on a pie chart, with the amount of deficit reduction targeted for each described in detail.  The five-year targets were listed as follows:

• Target A, Additional Local and Regional Subsidy.  The current 18-month contract with the Marin County Transit District (MCTD) for Marin local intra-county bus expires in April 2006, and currently produces $3.8 million per year in revenues to cover service expenses.  For the proposed target, the District anticipates an additional $10 million in revenue over the next five years in the new contract.
• Target B, District Expense Savings. The current five-year projection includes expense reduction savings of $1.5 million annually, and the proposed target contemplates an additional savings of $300,000 annually, or $3 million over the next five years.
• Target C, Transit Fares.  At an upcoming meeting of the Finance-Auditing Committee, staff will present a new five-year transit fare increase program, which has a five-year revenue increase target of $9 million. 
• Target D, Property Leasing.  The Board has directed staff to seek opportunities for revenue from the leasing of unused District properties, with a target of an additional $1 million over the next five years.
• Target E, Other Revenues.  The specific strategies for raising the remaining $66 million in revenue have not yet been decided, but a major component of this target would be the structure and timing of a possible Bridge toll increase.  In addition, other revenue enhancement strategies include expanding sales at the Gift Center, Bridge Café and Ferry Concessions, as well as searching for acceptable ways to partner with private companies or other public agencies for both revenue enhancement and expense reduction.

The report provided a potential deficit five-year reduction plan, depicted in a chart that offered three different options for the timing and structure of a possible toll increase, as well as other revenue enhancement strategies, including:

• Change in other toll policies, such as carpools;
• Public and private partnerships/corporate sponsorships/licensing;
• Additional ad/concession revenue; and,
• Revenue enhancement targets as noted above.

The report stated that the potential plan includes many possible alternatives, and that it would be feasible to meet the deficit reduction target with a different set of alternatives.  A list of additional revenue enhancement options was included in Appendix A, attached to the report.  The report further noted that, due to the fact that limited staff resources are already focused on current projects, it is recommended that the final Strategic Plan include only those strategies that appear feasible.  The report stated that once the elements of the final Strategic Plan are developed, staff will recommend timeframes for undertaking each strategy, and will staff use the final Strategic Plan as its work plan over the next year.  If the Board of Directors agrees with the general direction outlined in the report, the next step would be to develop a plan to reduce the deficit, resulting in a recommendation for consideration by the Board of Directors, with a target of completion in early spring 2006.  A copy of the report, with appendices, is available in the Office of the District Secretary.

At the meeting, Joseph Wire briefly summarized the staff report for the Board of Directors, noting that over the past few years, the District has focused on expense reduction strategies, with successful results, and that it is now time to focus on revenue enhancement strategies.  Mr. Wire proceeded to describe the five-year deficit reduction targets listed in the staff report, noting that the largest of those targets totaling $66 million, has yet to be decided upon.  Mr. Wire stated that in the past, when the District’s five-year deficit was high, most deficit reduction targets were conceptual, now that the deficit is much smaller, many of those targets are now practical. 

Discussion of this item by Board members included the following:

• President Middlebrook announced the formation of a new advisory committee, Strategic Plan for Long-Term Financial Stability Advisory Committee of the Board (Advisory Committee), to work with staff to further refine a general proposal that lays out a preliminary plan for updating the District’s Strategic Plan for Achieving Long-Term Financial Stability. This Advisory Committee will be comprised of the following members:  Chair Middlebrook, Committee Members Boro, Moylan, Reilly and Stroeh.  The Advisory Committee will report on its activities to the full Board of Directors and is expected to conclude its business by no later than February 2006.

• Director Shahum made the following inquiries and comments:
  • She inquired as to whether the District had data on the type of Golden Gate Bridge toll payers that prefer to pay their tolls with cash rather than sign up for FasTrak.  In response, Mr. Wire stated that while such data can be difficult to gather, the Bay Area Toll Authority (BATA) performed a toll customer survey several years ago that might contain useful information for the District. 
  • She inquired as to whether it would be feasible for some of the proposed toll increase options to go into effect as soon as July 1, 2006.  In response, Mr. Wire explained that after the Advisory Committee reports back to the Board of Directors in February 2006, the entire process required for a toll increase implementation could take as long as nine months, depending on the policy direction set by the Board.  He noted that there are different timeframes associated with the different toll increase options, including the choice of whether to change the entire toll structure or simply increase the FasTrak toll alone.
  • She commented that the Board must not lose the sense of urgency regarding revenue generation, and urged the Board to make a decision regarding development of an undated Strategic Plan by February 2006

• Director Ammiano made the following comments and suggestions:
  • He noted that BATA is considering additional discounts for FasTrak users, since there has been such a successful increase in FasTrak users on state-owned toll bridges in the Bay Area. 
  • He suggested that the Board consider providing affordable housing as the “highest and best use” at some of its properties, such as District-owned land near the Larkspur Ferry Terminal.

• Director Boro made the following comments and suggestions:
  • He stated that, in the past, FasTrak statements included a detailed listing of transactions and that it appears that this practice has changed as his last statement included only a summary of transactions.  He requested that staff contact BATA regarding this change in billing.  He noted that a recent newspaper article described billing problems certain FasTrak users were experiencing when they were incorrectly charged higher tolls for multi-axle vehicles.  In response, Mr. Wire stated that FasTrak users on the Golden Gate Bridge rarely experience such problems, since the District has a high standard of maintenance for its FasTrak equipment at the Toll Plaza.
  • He suggested that the Advisory Committee should seriously consider possible revenue generation through corporate sponsorships or licensing, since such programs could be potentially lucrative for the District.  He noted that the National Park Service has experienced successful private/public partnerships through its “Proud Partner” program.

• Director Martini inquired as to whether the District could implement phased toll increases in one action, to include annual toll rate increases over a set period of time.  In response, Attorney David Miller stated that the Board of Directors is empowered to make such a policy decision. 

In conclusion, Celia Kupersmith noted that the Advisory Committee has been formed for the purpose of discussing in depth all of the options available for the Strategic Plan, including those suggestions and comments by Board members at today’s meeting.  She clarified that the Advisory Committee will not be presenting to the Board a specific plan to increase tolls or to raise fares, but rather, will present an updated Strategic Plan, including specific actions and timeframes, for Board consideration.